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CS Professional · Corporate Restructuring, Valuation and Insolvency · Role, Functions and Duties of IP, IRP and RP

The IPA of which Sunita Rao is a member has announced an inspection of her records relating to an ongoing process. Sunita argues that records can be inspected only by the Board. Which statement is correct under the Code?

Sunita is wrong. The code of conduct in Section 208(2)(c) obliges every insolvency professional to allow the insolvency professional agency of which she is a member to inspect her records. The Code imposes no condition of a Board-only inspection or a tribunal order.

  1. AShe is right, because only the Board may inspect records
  2. BShe is right, because inspection needs a prior order of the Adjudicating Authority
  3. CShe is wrong, because inspection is allowed only after the process ends
  4. DShe is wrong, because her code of conduct requires her to allow the IPA to inspect her recordsCorrect

Explanation

Section 208(2)(c) makes it part of the code of conduct that an insolvency professional allows the IPA to inspect his records. Nothing in the text limits inspection to the Board, requires an Adjudicating Authority order, or postpones it until the process ends.

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